According to Economists, the Two Factors Most Important to Personal

question 185

Multiple Choice

According to economists, the two factors most important to personal investment decisions are

• A)rates of return and the rate of interest.
• B)rates of return and the rate of inflation.
• C)returns and diversifiable risk.
• D)returns and nondiversifiable risk.

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing and supporting higher-level cognitive functions like problem-solving and planning.

Emotion-Related

Pertaining to or influenced by emotions, including reactions, developments, and behaviors driven by feelings.

Wisdom

Expertise in the conduct and meanings of life, characterized by emotional maturity and the ability to show insight and apply it to problems.

Selective Optimization With Compensation

The ability to adapt to changes over time, optimize current functioning, and compensate for losses in order to preserve performance despite declines in fluid abilities.